EUR/USD could extend the rally towards 1.1040/1.1080 on a break past 1.0940 – SocGen

EUR/USD has extended its up move after breaking above the December high of 1.0730. Economists at Société Générale note that the pair could target the 1.1040/1.1080 area.

Break of 1.0940 brings 1.1040/1.1080 in play

“Daily MACD has turned flattish and is at a much lower level as compared to the highs achieved in November denoting receding upward momentum. This is not a reversal signal however a pause is not ruled out.” 

“December high of 1.0730 is near-term support.”

“In case the pair crosses 1.0940, the up move could extend towards 1.1040/1.1080 and April 2022 high of 1.1185.”